Regardless of any delegation of CASS functions to third parties (offshored or outsourced), the firm remains absolutely responsible for their continued compliance with the rules. In order to mitigate any risk of non-compliance by the firm due to some action/inaction of the third party to whom functions have been delegated, the firm must have in place an effective oversight framework which enables the firm to assess and monitor the third party.
This training aims to provide participants with a practical guide to oversight of third parties best practice through worked examples, templates, break-out sessions and case studies.
Learning outcomes:
- Highlight to participants that whilst regulatory functions can be delegated to third parties; responsibility for them cannot be abdicated
- Practical guidance on
- Ensuring CASS Compliance where operational functionality offshored / outsourced and firm has no real visibility
- Choosing a 3rd party and the importance of CASS due diligence
- 3rd party oversight best practice
- Managing 3rd parties – enforcing Service Level Agreements
- Developing Key Performance Indicators
Sessions:
- Oversight and Governance - how it relates back to FCA business plan 2019/20 - Reiteration of the FCA's reminder that "regulated activities can be delegated but not abdicated".
- Where firms delegate CASS-related functions via outsourcing / offshoring, they continue to be fully responsible for the firm's compliance with the CASS rules
- The difference between offshoring and outsourcing
- Consider how well "offshore" - many of the third parties to whom a firm may delegate their CASS related functions will not be regulated for the purposes of CASS
- Initial and repeat periodic CASS due diligence that assesses the third party's knowledge, capability and skillset around CASS, as well as its systems and controls
- Need for detail Service Level Agreements (SLAs) which take into account how service would, if at all, continue to be provided in a liquidation situation.
- Enforceability of SLAs
- Development and monitoring of Key Performance Indicators (KPIs)
- Weekly / monthly management information dashboard
- CASS Resolution Pack - build in as a requirement of SLA - availability / accessibility of information at third party
- Participation / co-operation of third parties in annual CASS audit
- Aviva £8.2 million fine - Case Study
Course Instructor:
This course is lead by Paul McDermott.
Paul has worked in financial services for over 20 years, holding the senior positions of compliance director, head of compliance, regulatory oversight and MLRO for several firms including Deutsche Bank, Dresdner Kleinwort Wasserstein AXA Framlington, Liverpool Victoria and Brewin Dolphin. As a consultant, he liaises with the FCA and the FOS in supporting companies facing regulatory sanctions, gaining authorisation, creating or reorganising of governance structures and the management of complaints.
He has recently taken on the Compliance, Money Laundering and CASS oversight Senior Management Functions for a Portfolio Management firm and a Fintech firm.
Who is this course aimed at?:
- Professionals involved with TPA oversight
- Heads of CASS Oversight
- Heads of Compliance
- CASS related functions:
- Operations (Settlements, Reconciliations)
- Treasury
- Client On-Boarding
- Legal
- Finance
Benefits of attending:
- Understand the various risk involved with third parties
- Make critical decisions around when to use third parties
- Learn how to embed an effective oversight framework
- Navigate market complexity
- Improve CASS compliance
- Acquire new tools, techniques, methods
- Improve confidence through peer networking
Choose this course when:
- Considering third party outsourcing
- Improving processes, systems and technology
- Developing learnt responses to critical situations
- Wanting to improve knowledge & awareness around third party oversight
- Developing desired behaviours within culture
- Looking to develop Key Performance Indicators (KPIs)
